The bearish wave formation was completed by creation of double top at point 5 supported by RSI divergence at H1/H4.
After the test of 2-4 line area, the price retraced to 61.8 of previous move and provided opportunities for opening short position. It is possible that the price will re-test 1-3-5 area once again before beginning the descend. Both this level and 2-4 possible breakout area should be monitored carefully.
3 positions were opened, more can be considered depending on further development of this pattern.
After the test of 2-4 line area, the price retraced to 61.8 of previous move and provided opportunities for opening short position. It is possible that the price will re-test 1-3-5 area once again before beginning the descend. Both this level and 2-4 possible breakout area should be monitored carefully.
3 positions were opened, more can be considered depending on further development of this pattern.
Trade active
5 more positions were opened - the pair went to re-test 1-3-5 and US housing data was much worse than expected.Trade active
During Yellen's speech which appeared to be pretty dovish, the pair formed another minor WW (purple).1 more position was added at the peak of 1-3-5 re-test (hopefully, will finally start going South after Yellen, I expect the price to test at least 2-4 line again.)
Trade closed manually
After price reversal and breaking the upper line of the pattern, the positions were closed.Trade active
The price returned to the internal structure of the pattern - supported by RSI divergence and continuous bearish volume - shorts re-opened.Trade active
USDCHF is trying to break 2-4 again. Currently the pair is in accumulation phase and the real breakout in any direction will most likely be accompanied by volatility and volume increase.Trade active
After the initial cross of 2-4, bounce back and strong continuation further South along with medium volume increase, it started looking more like a valid breakout.Trade active
With the price returning back to the pattern and forming another peak, the situation is looking more like this now:Hopefully, the latest breakout will be the real one, but only time can tell )
It is likely that with lot's of important upcoming data within next few hours and Yellen's speech later, the pair will finally decide its destination.
Note
Didn't update this trade on time - SL was put too low and got hit above point 5 indicated at the previous screenshot.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.